UK's Raspberry Pi shares hit record as industrial demand boosts outlook
Raspberry Pi's Financial Performance and Market Drivers
Profit Outlook Upgraded
June 5 (Reuters) - Britain's Raspberry Pi on Friday upgraded its full-year profit outlook, sending shares of the single-board computer maker to an all-time high.
Industrial Demand and Pricing Strategy
The Cambridge-based company said strong pricing and demand from industrial customers helped it weather soaring memory-chip costs, though its profitability per unit would moderate in the second half as the inventory of chips secured at lower prices begins to shrink.
2026 Core Profit Expectations
Raspberry Pi said it expected full 2026 core profit to be "significantly ahead" of current market expectations and forecast core profit for six months to June 30 of at least $38 million, close to the current $42 million analyst consensus for the whole year.
Share Price Performance
Its FTSE 250-listed shares soared as much as 18% to a record 972 pence in early trade, having more than tripled in value from the IPO price of 280 pence in 2024.
Supply Chain and Memory Chip Strategy
Raspberry Pi said it would tap debt facilities to make strategic memory purchases to secure supply amid an unprecedented scarcity driven by surging AI demand.
Managing Macroeconomic Uncertainty
"While macroeconomic uncertainty persists, and the pricing and availability of DRAM and non-volatile memory remains challenging, the company is confident that it can secure the inventory necessary to meet its FY 2026 production goals," it said in a statement.
Product Applications and Customer Base
The company's low-cost, credit-card-sized computers are used in factory automation, robotics, digital signage, medical devices and energy management systems and Raspberry Pi said demand from equipment manufacturers and industrial customers remained robust.
Memory Chip Usage Breakdown
According to the company, about one-third of its boards and modules by volume either use no memory chips or use an older type for which the company maintains a separate inventory buffer not exposed to market volatility.
Reporting Credits
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Sonia Cheema and Tomasz Janowski)